CTC Media, Inc. Investor Presentation...CTC Media, Inc. Investor Presentation First Quarter 2010...
Transcript of CTC Media, Inc. Investor Presentation...CTC Media, Inc. Investor Presentation First Quarter 2010...
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CTC Media, Inc.
Investor Presentation
First Quarter 2010 Results
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The Leading Independent Media Company in Russia and the CIS
FREE-TO-AIR
CTC MEDIA
GROUP
PRODUCTION
- UZBEKISTAN
- KAZAKHSTAN
- MOLDOVA
CTC - pure entertainment channel
targeting viewers aged 6-54
Domashny - only channel in Russia
targeting females aged 25-60
DTV - action / investigative themed channel
targeting viewers aged 25-54
Channel 31 - entertainment channel
targeting viewers aged 6-54
SofTS - start-up channel
CTC TV Dixi - entertainment channel
targeting viewers aged 6-54
6 channels in 4 countries
and 2 in-house production companies
RUSSIA CIS SOHO MEDIA COSTAFILM
• 4th most watched broadcaster in Russia with a national
audience of c.100 million for CTC, the flagship channel
• One of the leading broadcasters in Kazakhstan (Channel 31)
• Entertainment focus appeals to dynamic, youthful &
affluent audience
• TV is the most cost-effective advertising medium in Russia
• Well positioned portfolio of assets with in-house
production capabilities
• Strong cash flow generation & balance sheet
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2
Operational & Financial Highlights
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Average combined 4+ audience share in Russia up year-on-year from 12.3% to 13.0%
Target audience shares up year-on-year for CTC and Domashny networks
Successful introduction of CTC-international following its North American launch in December 2009
Sale of 100% interest in Kazakh radio station for $2.0 million in cash in January 2010
Group Highlights for the First Quarter 2010
GROUP FINANCIAL HIGHLIGHTS
GROUP OPERATIONAL HIGHLIGHTS
Total revenues up 18% to $123.2 million
OIBDA up 1% to $39.7 million
OIBDA margin of 32.2%
Net income up 8% to $25.2 million, fully diluted EPS of $0.16 (Q1 2009: $0.15)
Net cash position of $76.2 million at end of the period
Board of Directors approved a $0.065 per share cash dividend to be paid on June 30, 2010 to stockholders of record as of June 1, 2010
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44
Market and Operational Update
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46.3 48.7 48.1 50.1
27.6 25.3 22.0 20.8
6.0 5.46.3 5.1
18.1 18.217.2 16.5
5.4 6.4
43.555.7
30.716.0
6.44.4
18.213.4
0.9 1.2 1.59.3
2004 2005 2006 2007 2008 2009
5
3.9 5.06.5
9.211.1
6.4
1.7 2.33.2
4.45.6
3.6
2004 2005 2006 2007 2008 2009
TV Ad Market
Total Ad Market
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Sources: (1) Russian Association of Communication Agencies
(2) Initiative Media
Note: (*) Data for 2007 and 2008 was restated by Russian Association of Communication Agencies in February 2010
Ad Spend in Russia by Media Segment1 (%)
Russian Advertising Market Overview
Internet
Radio
Print
Television
Outdoor
Advertising Market Size1 (US$ billion)
TV remains inexpensive relative to other media in Russia and continues to take advertising market share
2009 Cost per Thousand (CPT)2 (US$)
2009 TV Cost per Thousand (US$)²0.4 0.8 0.9Other 1.21.0 1.3
* *
* *
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Russian TV Advertising Sales Structure
Combined audience share
of 25%2
Advertising on CTC Media channels exclusively sold by the largest media sales house in Russia
Video International
Advertising Agencies
AlkasarGazprom-Media /
Advertisers
Media Sales Houses:
Combined audience share
of 62%1
Sources: (1) Video International web site, as of April 2010. Source for audience share: TNS Gallup (all above 4 years old) in Q1 2010
(2) Public information, as of April 2010. Source for audience share: TNS Gallup (all above 4 years old) in Q1 2010
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Sectors Advertised on CTC Media Channels
Vast majority of advertisers are basic consumer goods focused
CTC Media advertisers’ budgets split: 77% multinationals, 23% local companies2
1 Food 27%
2 Cosmetics 19%
3 Other goods 11%
4 Pharmaceuticals and vitamins 11%
5 Telecoms 7%
6 Appliances 5%
7 Personal care products 5%
8 Beverages 5%
9 Detergents 5%
10 Beer 3%
11 Auto and finance 2%
100%
1 Food 25%
2 Cosmetics 20%
3 Other goods and services 13%
4 Pharmaceuticals and vitamins 12%
5 Appliances 7%
6 Personal care products 5%
7 Detergents 5%
8 Telecoms 5%
9 Beverages 4%
10 Beer 2%
11 Auto and finance 2%
100
%
Notes: (1) CTC Media sales data for CTC, Domashny and DTV Networks
(2) Q1 2010
Q1 20101Q1 20091
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8
19.9
22.7
4.1
0.9
18.8
21.9 21.6
4.0
1.3
6.8
20.4
12.4 13.0
6.2
Channel One VGTRK Gazprom-Media CTC Media National Media Group Prof-Media UTV Russia Holding
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Free-to-Air TV Landscape in Russia
Source: TNS Gallup Media, demographic ―all above 4 years old‖, CTC Media’s Research Department
CTC Media is the largest non-state owned broadcasting company in Russia
Combined Audience Shares, %
(all 4+ demographic)
Q1 2009
Q1 2010
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9
19.9
17.8
13.7
8.5
6.7
5.1
3.32.7
2.0 2.1 1.9 1.7 1.91.2 1.0 0.9 0.6 0.4 0.3
12.3
18.8
16.9
15.1
13.0
9.1
6.5
4.3
3.22.6
2.2 2.0 1.7 1.92.2
1.7
0.8 0.8 0.7 0.6 0.6
12.412.4
Channel
One
Rossiya 1 NTV CTC
Media
Combined
CTC TNT Ren-TV TV Center TV-3 Domashny Rossiya K DTV Channel 5 Rossiya 2 Zvezda MTV Rossiya 24 Muz-TV 2x2 7TV Other
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All 4+ Audience Share Dynamics and Power Ratio
(1) Source: TNS Gallup Media, demographic ―all above 4 years old‖, CTC Media’s Research Department
CTC Media captures market share in access of combined audience share due to its high power ratio
(2) Power ratio = National TV advertising market share/All 4+ audience share (average). Combined Power Ratios include blended power ratios for CTC, Domashny and DTV (company’s estimates)
(3) Includes audience shares of smaller national and regional channels
Audience Shares, %
(all 4+ demographic)1
Q1 2009
Q1 2010
Combined Power Ratio of CTC Media’s channels in Q1 2010 – 1.52
(FY 2009: 1.5)
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2.62.9 3.0
2.0 2.2 2.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Q1 09 FY 09 Q1 10
2.2 2.2 2.11.9 2.0 1.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Q1 09 FY 09 Q1 10
10
CTC Media Target Audience Share Dynamics
CTC and Domashny networks gained target audience shares y-o-y in Q1 2010
Domashny Network DTV NetworkCTC Network
All 4+ demographicAll 4+ demographic
Target demographic All 6-54 Target demographic All 25-54
Source: TNS Gallup Media (audience shares, %)
All 4+ demographic
Target demographic females 25-60
11.4
12.2 12.6
8.59.0 9.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Q1 09 FY 09 Q1 10
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111111
Increasing Technical Penetration
Note: (1) Technical penetration means the percentage of the population that has the technical ability to receive a particular broadcast signal. Measured annually by TNS Gallup Media in cities with populations of more than 100,000
Reaching more potential viewers through expanded technical penetration
Technical Penetration1, %
Substantial year-on-year increase in technical
penetration for CTC (+3.2pp) Domashny (+5.4pp) and
DTV (+7.4pp) in 2009
We continue to improve the signal distribution
through regional stations acquisitions and expanding our
affiliate network
50% of technical penetration is provided by CTC Media’s
owned-and-operated stations and repeater
transmitters
86.6
58.2
44.9
87.4
64.8
54.4
87.5
71.0
61.0
90.7
76.4
68.4
0
10
20
30
40
50
60
70
80
90
100
20062007
20092008
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Russian Series
4% (10%)
Russian and
Foreign Movies
42% (52%)
Foreign Series
and Animation
31% (83%)
Russian Shows
12% (14%)
Russian Sitcoms
and Sketchcoms
12% (16%)
Foreign Series
30% (9%)
Russian Series &
Sitcoms
14% (13%)
Russian Shows
19% (64%)Russian and
Foreign Movies
38% (14%)
Foreign Series
and Animation
40% (20%)
Russian &
Foreign
Movies
38% (14%)
Russian Series
& Sketchcoms
13% (19%)
Russian
Shows
19% (64%)
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Programming Strategy
Domashny Network1
DTV Network1
CTC Network1
Maximizing the audience share numbers in desirable demographics
through well-balanced content acquisition and scheduling strategy
Locally produced content is the key
element of our strategic programming
grids and drive the audience share in
target demographics
In-house produced series and sitcoms are
top CTC prime-time performers and are
the core of our content library
¼ of CTC Media’s programming and ½ of
CTC prime time is produced in-house2
Programming agreements with major
Hollywood studios - Sony Pictures
Television International, Walt Disney,
Paramount, Universal and Warner Bros.
Optimal mix of programming
Notes: (1) Content split is given for Q1 2010
(2) As a % in amortization of programming rights, Q1 2010
Content split by hours and by % in amortization of programming rights expense
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33.4
11.012.7
5.5 6.6
3.0 2.34.3
2.81.3 1.0 1.2
11.510.4 9.7
6.54.9
32
3.51.9 1.2 0.8 1.1
10.5
34.1
Channel
One Eurasia
KTK Channel 31 NTK Kazakhstan El
Arna/Khabar
Khabar NTV (Alma
TV)
Astana Rakhat Tan HIT TV Mir
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Kazakhstan:
Audience Shares, %
(all 6-54 demographic)
Channel 31 Audience Share Dynamics
All 6+ demographic
Target demographic All 6-54
Audience Share Dynamics
Channel 31 is one of the leading broadcasters in Kazakhstan
Source: TNS Gallup Asia
Q1 2009
Q1 201012.7
11.6
10.411.2
10.29.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Q1 09 FY 09 Q1 10
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Further consolidation of our position as Russia’s leading independent free-to-air TV broadcaster
Further development of the DTV and Domashny channels, sustainable position of CTC channel
Monetize strong CTC, DTV and Domashny brands
Opportunistic approach to acquisitions and start-up projects in neighboring CIS markets
Establish international presence through developing selected CTC Media programs based on existing content for selective international markets
Core strategy
Drivers
Increase technical penetration of DTV and Domashny channels
Sustain CTC’s target audience share, increase Domashny’s and DTV’s target audience shares
Attract younger audiences to Domashny and DTV
Integrate Russian networks to drive combined power ratio and sustain sound level of overall market share
Expand and improve online presence of free-to-air channels in Russia
Maintain focus on pure entertainment programming and complementary audience profiles
Exert greater control over programming quality and investments through in-house content production
Develop existing CIS operations
Selectively expand into neighboring CIS markets to ensure growth participation
Maximize cash flows
Use strong balance sheet to capitalize on investment opportunities and enhance shareholder returns
Key Strategic Objectives
Clear and focused strategy
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Markets of Operations and Primary Strategic Interest
Ukraine
Population = 45.7 million
2009 TV Ad Market = US$ 252 million
Moldova
Population = 4.3 million
2009 TV Ad Market = US$ 17.2 million
Russia
Population = 142 million
2009 TV Ad Market = US$ 3.6 billion
Uzbekistan
Population = 27.6 million
2008 TV Ad Market = US$ 15 million*
Kazakhstan
Population = 15.4 million
2009 TV Ad Market = US$ 95 million
Belarus
Population = 9.6 million
2009TV Ad Market = US$ 60 million
Sources: Video International, Russian Association of Communications Agencies, Zenith Optimedia, CIA World Factbook, Rosstat, All-Ukrainian Advertising Coalition, Company’s estimates
* 2009 data is not available
Potentially reaching over 180 million viewers in four countries of current operations
Counties of current operations
Countries of potential interest
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Financial Highlights
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104.8
180.5
123.2
99.1
172.6
0
50
100
150
200
Q1 2009 Q4 2009 Q 1 2010
18%
Group Total Operating Revenues
Total Operating Revenues
Advertising Revenues
Recovery of Russian TV ad. Market
Growing audience shares and their
efficient monetization
High blended power ratio
Favorable currency exchange rate
movements
14% positive impact of the exchange rate
between the US dollar and the Russian
ruble on Russian ad sales in Q1 2010
CTC Media’s total operating revenues up
18% to $123.2 million
The increase reflects :
US$ mln
18%
Total revenues up 18% y-o-y in Q1
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39.2
87.4
39.7
0
20
40
60
80
100
Q1 2009 Q4 2009 Q 1 2010
32.2%48.4%37.4%
23.3
64.5
25.2
0
50
100
150
200
Q1 2009 Q4 2009 Q 1 2010
20.5%35.7%22.2%
OIBDA up 1% year on year to $39.7 million
OIBDA margin: 32.2%
Fully diluted EPS up 7% to $0.16
Group OIBDA and Net Income
Group Net Income
Group OIBDA
US$ mln
US$ mln
Note: (1) Adjusted results exclude $232.7 million charge arising from the impairment of the intangible assets of DTV Group in Russia, Channel 31 in Kazakhstan and a broadcasting group in Moldova in the Q4 2008; an $18.7 million
charge arising from the impairment of the broadcasting licenses in Russia in Q4 2009; and a $28.6 million stock-based compensation expense recognized in conjunction with the previously announced settlement by CTC Media of
litigation brought by it against its former CEO and Board in Q4 2009. See reconciliations on pages 29-30
1%
8%
BOD approved second $0.065 per share cash dividend installment to be paid on June 30, 2010
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Adjusted1
Adjusted1
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Corporate Office
-28%
Production Group
-1%
CIS Group
-2%
DTV TV Station Group
-1%
Domashny TV Station
Group
1%
CTC TV Station Group
20%
DTV Netw ork
2%Domashny Netw ork
8%
CTC Netw ork
100%
CTC Netw ork
67%
Domashny Netw ork
11%
DTV Netw ork
8%
CTC TV Station Group
10%
Domashny TV Station
Group
1%
DTV TV Station Group
1%
CIS Group
2% Eliminations and
other
-12.7%
CTC Netw ork
67%
Domashny Netw ork
10%
DTV Netw ork
8%
CTC TV Station Group
10%
Domashny TV Station
Group
2%
DTV TV Station Group
1%
CIS Group
2%
CTC Netw ork
88%Domashny
Netw ork
9%
DTV Netw ork
11%
CTC TV Station
Group
15%
Domashny TV
Station Group
1%
DTV TV Station
Group
-1%
CIS Group
-3%
Production Group
1%
Corporate Office
-20%
Eliminations and
other
-20%
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Note: (1) intersegment transactions are included in eliminations.
Total Operating
Revenue¹
Total OIBDA1
Q1 2009 Q1 2010
Diversification of business and decrease of dependence on CTC Channel
Total Revenue
$123.2 mln
Total Revenue
$104.8 mln
Total OIBDA
$39.2 mln
Q1 2009 Q1 2010
Total OIBDA
$39.7 mln
Q1 2010 Revenue and OIBDA Contribution by Segment
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Direct operating
expenses
$12.5 m
14%
SG&A expenses
$20.3 m
23%
Amortization of
programming rights
$49.5 m
57%
Amortization of
sublicensing rights and
own production cost
$1.4 m
2%
Depreciation &
amortization
$3.4 m
4%
Direct operating
expenses
$7.3 m
11%
SG&A expenses
$18.3 m
27%
Amortization of
programming rights
$36.9 m
54%
Amortization of
sublicensing rights
and own production
cost
$3.1 m
4%
Depreciation &
amortization
$2.6 m
4%
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Q1 2010 Operating Expenses
In Q12010 CTC Media’s total operating expenses
increased by 27% year-on-year in US dollar
terms due to:
Q1 2009
Total OpEx
$68.2 mln
Total OpEx
$86.9 mln
Q1 2010
OpEx increases in line with CTC Media development strategy
Increased investments in programming (resulted
in healthy audience share gains)
and network coverage
Foreign currency movements
14% positive impact of the exchange rate
between the US dollar and the Russian ruble
on Russian ad sales in Q1 2010 (2/3 of OpEx
are ruble denominated)
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CIS Group Financials
CIS Group contributed $2.3 million or 1.9% of CTC
Media’s total operating revenues in Q1 2010
Channel 31 Group in Kazakhstan contributed a
majority of the segment revenues
Note: (1) CIS Group results include intercompany results that are eliminated level in consolidation at CTC Media Group level
CIS Group contributed 1.9% to CTC Media’s total operating revenues in Q1 2010
(US$, million) Q1 2009 Q1 2010
REVENUES 2.0 2.3
OIBDA (1.1) (0.7)
OIBDA margin % -55.8% -32.6%
CIS Group1
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Balance Sheet and Cash Flow Highlights
Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights
Notes: (1) Working capital = current assets - current liabilities
(2) Net cash position = cash and cash equivalents + short-term investments – total debt
(3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment - acquisitions of intangibles
Strong cash position and no debt
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(US$ mln)
As of December
31, 2009
As of March
31, 2010
Cash and cash equivalents 84.4 25.9
Short-term investments 39.1 50.2
Total assets (incl cash), 851.3 846.5
Including Goodwill 226.1 232.9
Broadcasting licenses 159.0 163.6
Working capital1
134.9 158.6
Total debt 28.3 -
Stockholders’ equity 663.8 706.2
Net cash position2
95.2 76.2
The three
months ended
March 31, 2009
The three
months ended
March 31, 2010
(US$ mln)
Cash at beginning of period 98.1 84.4
Net cash provided by operating activities, including 27.8 5.1
Acquisition of progr. and sublic. rights (34.7) (63.5)
Net cash used in investing activities (13.0) (26.4)
Net cash used in financing activities 0 (38.4)
Effect of exchange rate changes on cash (3.6) 1.2
Cash at end of period 109.3 25.9
Cash used for acqusitions (12.1) (12.8)
(Acquisitions of businesses, net of cash acquired)
CapEx (1) (4.4)
CapEx as % of Total Revenue 0.0% 3.6%
Free cash flow3
23.4 5.1
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To conclude…
A leading independent media company in Russia and the CIS
Most transparent Russian company according to Standard & Poor’s1
The only direct way to get exposure to Russia’s TV advertising market
Well-positioned channel brands with growing audience and market shares
Benefiting from dominance of TV as only national reach media
Majority of client base in consumer goods sector with both large multi-
national and local advertisers
Operating advantage due to in-house content production businesses
Focus on cost control and profit maximization with strong balance sheet
(1) CTC Media scored #1 in Standard & Poor’s Transparency and Disclosure by Russian Companies Study in 2008 and #2 in 2009
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Appendix
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Source: U.S. SEC filings, as of March 31, 2010
Backed by strong strategic shareholders
CTC Media Shareholder Structure
39% stake in CTC Media
Shareholder of CTC Media since 2002
Headquartered in Stockholm, Modern Times Group is a leading international entertainment broadcastinggroup with the second largest geographical broadcast footprint in Europe
MTG’s TV assets are broadcast in a total of 30 countries and have 125 million viewers
The company’s shares are listed on Nasdaq OMX Stockholm's Large Cap market
26% stake in CTC Media
Shareholder of CTC Media since 2003
Founded in 1989 and headquartered in Moscow, Alfa Group Consortium is one of Russia’s largest privatelyowned financial-industrial conglomerates
Alfa Group is focused on value-oriented, longer-term opportunities, primarily in Russia and the CIS
35% free float
IPO on NASDAQ in June 2006
In July 2007 CTC Media qualified for the premier NASDAQ Global Select Market as the result of meetingNASDAQ's most stringent listing standards
Major shareholders:
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Reconciliation of Non-GAAP Measures
Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other
corresponding GAAP financial measures
Operating Intersegment Operating Capital Depreciation Amortization Amortizationrevenue revenue income/ and of of
from (loss) amortization programmin sublicensingexternal rights rights
customers
CTC Network $70,555 $783 $34,302 ($64) ($131) ($28,492) ($3,393) $34,433
Domashny Network 10,567 3 3,383 (6) (113) (4,891) — 3,496
DTV Network 8,667 — 3,721 (297) (592) (2,488) — 4,313
CTC Television Station Group 10,254 277 5,270 (274) (415) (822) — 5,685
Domashny Television Station Group 1,739 294 77 (52) (311) (5) — 388
DTV Television Station Group 774 28 (1,193) - (720) (1) — (473)
CIS Group 2,044 — (1,362) (161) (222) (1,533) — (1,140)
Production Group 178 5,878 263 — (12) — (4,890) 275
Corporate Office - - (7,856) (11) (65) - - (7,791)
Business segment results $104,778 $7,263 $36,605 ($865) ($2,581) ($38,232) ($8,283) $39,186
Eliminations and other - ($7,263) ($22) $9 - $1,349 $5,221 ($22)
Consolidated results $104,778 - $36,583 ($856) ($2,581) ($36,883) ($3,062) $39,164
Three months ended March 31, 2009
OIBDA
Operating Intersegment Operating Capital Depreciation Amortization Amortizationrevenue revenue income/ and of of
from (loss) amortization programmin sublicensingexternal rights rights
customers
CTC Network $82,639 $620 $39,483 ($574) ($285) ($36,602) ($1,065) $39,768
Domashny Network 13,431 51 2,811 (154) (207) (6,822) — 3,018
DTV Network 9,885 10 283 (1,688) (692) (6,031) (203) 975
CTC Television Station Group 12,128 383 7,333 (1,068) (574) (77) - 7,907
Domashny Television Station Group 1,681 510 1 (608) (371) (1) - 372
DTV Television Station Group 674 9 (1,460) (1) (971) - — (489)
CIS Group 2,217 68 (895) (261) (151) (1,565) - (744)
Production Group 442 7,175 (264) (18) (39) - (6,326) (225)
Corporate Office 427 (11,112) (33) (84) - - (11,028)
Business segment results $123,097 $9,253 $36,180 ($4,404) ($3,374) ($51,098) ($7,594) $39,554
Eliminations and other $103 ($9,253) $96 ($43) ($3) $1,637 $6,239 $99
Consolidated results $123,200 - $36,276 ($4,447) ($3,377) ($49,461) ($1,355) $39,653
Three months ended March 31, 2010
OIBDA
-
Three Months Ended December 31, 2009
(US$ 000’s) OIBDA
Depreciation
and
amortization
Operating
income
CTC Network 34,433$ (131)$ 34,302$
Domashny Network 3,496 (113) 3,383
DTV Network 4,313 (592) 3,721
CTC Television Station Group 5,685 (415) 5,270
Domashny Television Station Group 388 (311) 77
DTV Television Station Group (473) (720) (1,193)
CIS Group (1,140) (222) (1,362)
Production Group 275 (12) 263
Corporate Office (7,791) (65) (7,856)
Business segment results 39,186$ (2,581)$ 36,605$
Eliminations and other (22) - (22)
Consolidated results 39,164$ (2,581)$ 36,583$
Three Months Ended March 31, 2010
(US$ 000’s) OIBDA
Depreciation
and
amortization
Operating
income
CTC Network 39,768$ (285)$ 39,483$
Domashny Network 3,018 (207) 2,811
DTV Network 975 (692) 283
CTC Television Station Group 7,907 (574) 7,333
Domashny Television Station Group 372 (371) 1
DTV Television Station Group (489) (971) (1,460)
CIS Group (744) (151) (895)
Production Group (225) (39) (264)
Corporate Office (11,028) (84) (11,112)
Business segment results 39,554$ (3,374)$ 36,180$
Eliminations and other 99 (3) 96
Consolidated results 39,653$ (3,377)$ 36,276$
27
Reconciliation of Non-GAAP Measures (continued)
Reconciliation of segment OIBDA to segment operating income
Reconciliation of consolidated OIBDA to consolidated
operating income
Reconciliation of consolidated OIBDA margin to
consolidated operating income margin
(US$ 000’s) 2009 2010
OIBDA $39,164 $39,653
Depreciation and amortization (exclusive
of amortization of programming rights and
sublicensing rights) (2,581) (3,377)
Operating income $36,583 $36,276
Three months ended
March 31,
2009 2010
OIBDA margin 37.4% 32.2%
Depreciation and amortization
(exclusive of amortization of
programming rights and sublicensing
rights) as a % of total operating
revenues -2.5% -2.7%
Operating income margin 34.9% 29.4%
March 31,
Three months ended
-
282828
Contact Information and Disclaimer
DISCLAIMER
The information contained in this presentation, including market data that are attributed to specific sources and have not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
The presentation is not an offer of securities for sale in the United States. Neither the presentation nor any copy of it may be taken or transmitted into or distributed in the United States of America or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the ―Securities Act‖).
This presentation is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.
Certain statements in this presentation that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, the company’s ability to deliver audience share, particularly in primetime, to its advertisers; changes in the size of the Russian television advertising market; free-to-air television remaining a significant advertising forum in Russia; the company’s reliance on a single television advertising sales house for substantially all of its revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's latest annual and quarterly filings with the SEC. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
For further information please visit www.ctcmedia.ru or contact:
Ekaterina Ostrova
Director, Investor Relations
Tel: +7 (495) 783 3650
E-mail: [email protected]
http://www.ctcmedia.ru/mailto:[email protected]